Moldova proposes doubling capital gains tax on real estate sales

A proposed fiscal policy project in Moldova could potentially double the tax burden on individuals selling real estate starting in 2027. The proposal aims to modify how capital gains—the difference between the purchase price and the sale price—are taxed.

Currently, 50% of capital gains are taxed. At a 12% rate for individuals, the effective tax burden is approximately 6% of the profit. Under the new project, 100% of the capital gains would be subject to taxation, which would increase the effective tax to approximately 12% of the profit.

The Union of Real Estate Agencies (UAI) noted that while primary residences will maintain preferential tax treatment, the definition of a primary residence may be expanded to include properties that were the taxpayer's sole residence for the last three years. The changes may specifically impact investment properties, potentially causing owners to delay sales or increase asking prices to cover tax costs.